Nestlé has revealed plans to invest Rs42bn ($507.5m) in its business in India between 2023 and 2025.
The Swiss giant confirmed to Just Food that Rs21.3bn has already been spent in the first half of 2023 in capital investments.
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Nestlé said part of the expenditure will go towards the company’s new food processing unit in Odisha, which was confirmed as the location for its tenth factory in India last month.
The Odisha facility will be predominantly used to manufacture noodles but, depending on the market, could be used to produce other products such as chocolate and confectionery.
Until 2020, the KitKat and Maggi maker had invested around Rs70bn in its Indian business.
Last week, Nestlé’s India business announced its results for the second quarter of the year, reporting better-than-expected earnings thanks to price increases and demand for its chocolates and packaged foods, including Maggi noodles.
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By GlobalDataThe company’s revenue from operations hit Rs46.59bn for the period, climbing 15% year-on-year. Profit also spiked to Rs6.98bn.
Suresh Narayanan, chairman and managing director of Nestlé India, said in a statement: “This is the fifth quarter in a row of double-digit growth across all product groups.”
Last week, parent company Nestlé also revealed its results for the first six months of the year, increasing its sales growth guidance. The Swiss major’s sales rose 1.6% on a reported basis to SFr46.3bn ($53.3bn).
In value terms, trading operating profit rose 2.9% to SFr7.9bn. Net income climbed 7.7% to SFr5.6bn.
